Professional Documents
Culture Documents
SHRM
2008
Module Outline
Class 1: Welcome to India. Quick facts. History and societal background. Business facts. Best Indian companies to work for (2007). Federal laws. Class 2: National cultural profile (GLOBE study). Class 3: HR practices:
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Class 1
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Welcome to India
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The Indian social system is dominated by a caste system. o Four specific castes; Brahmins, Khastriyas, Vaishyas, Shudras. o Created distinct labor categories. o Associated status differences.
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Business Facts
Today, India is the fourth largest economy in the world. Until 1991, there was an import substitution policy that favored domestic industries. After 1991, there was active foreign investment with a very strong trade liberalization policy.
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Foreign direct investment in India increased dramatically ($15.8 million in 1997 compared with 0.3 million in 1991).
In 2000, the Y2K computer crisis required worldwide computer remediation provided by software engineers. Indian software engineers were found to be very dedicated and hard-working (Friedman, T. 2005; The World is Flat).
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Each group will have 8-10 minutes during the next class session to present their best HR practices.
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The Workers Compensation Act of 1923 ensured that employers compensate employees for work-related injuries. The Trade Union Act of 1926 gave formal recognition to trade unions. The Industrial Disputes Act of 1947 led to the increased role of industrial relations (employees were distinguished by the work they did such as permanent, temporary, trainee etc.). The Factories Act of 1948 regulated the work environment in factories to ensure the safety of employees. The Employees Provident Funds and Miscellaneous Provisions Act of1952 required employers to provide contributions for retirement.
SHRM
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Indian HR Associations
In the 1940s and early 1950s, two professional HR associations were established to acknowledge the importance of HR:
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Indian Institute of Personnel Management (IIPM). National Institute of Labor Management (NILM).
In1980, the two associations merged to form the National Institute of Personnel Management (NIPM). NIPM is the only group engaged in the advancement of HR, industrial relations and labor welfare. NIPM has a working relationship with HR groups in the United States, Australia and the United Kingdom.
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Affirmative Action
Affirmative Action: o Based on the caste system.
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Federal jobs and admissions to colleges are strongly influenced by quotas for caste reservations. State governments can set aside 50 percent of jobs based on different castes. To get increased support from the public, some states have 75 percent of job reserved.
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Quiz 1
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Class 2
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India: 5.47 (rank 16). Morocco : 5.80 (highest score). India : 4.38 (rank 25). Sweden: 5.22 (highest score). India: 5.92 (rank 4). Philippines: 6.36 (highest score). India: 4.15 (rank 29). Switzerland: 5.37 (highest score) .
Institutional collectivism:
In-group collectivism:
Uncertainty avoidance:
Source: Chhokar, J., Brodbeck, F., & House, R (Eds) .(2007). Culture and leadership across the world. The GLOBE book of in-depth studies of 25 societies. Lawrence Erlbaum Associates. Mahwah, New Jersey.
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Assertiveness:
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What kind of HR practices would low power-distance cultures adopt? What staffing practices would high power-distance cultures encourage?
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A very close bond with their organization family, friends and relatives.
What kind of HR practices would low institutional collectivism cultures adopt? What staffing practices would high in-group collectivism cultures encourage?
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What kind of HR practices would low uncertaintyavoidance cultures create? What staffing practices would high uncertainty-avoidance cultures encourage?
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Class 3
Indian HR Practices
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Staffing Practices
Resumes seek strong educational background. Employee referrals (predominantly used for middle and senior management). Succession planning (predominantly used for middle and senior management). Elaborate employment tests related to the job, especially at entry level. E-recruitment: Naukri.com was the first e-portal established in 1998 (naukri means job in Hindi ).
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Staffing Practices
2008
Training Practices
Training (future orientation): o Education is extremely valued, and training is an extension of it. o Entry point training programs (3 to12 months of orientation). o Ongoing training programs. o Development programs (promotions involve training). o In-house training centers are a common feature in Indian organizations. o Deductive learning style in training: Known as topdown approach where learning principles start with general concepts and move toward specific application.
SHRM
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Performance Appraisal
Cultural dimensions of collectivism and power distance make objective appraisals a challenge.
Supervisors and subordinates develop close relationships. Organizational loyalty is as important as work performance. Employee promotions are frequently based on seniority.
Annual performance appraisals. Supervisors provide performance ratings that are frequently inflated due to personal relationships. Employment at will does not exist in India. Employment termination carries a social stigma.
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House rent allowance (HRA*). Medical allowance. Dearness allowance (DA*). Leave travel allowance (LTA*). Commuter allowance.
* These allowances are frequently referred by their acronyms
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Sick leave: 7 days (medical certificate required). Casual leave: 7 days (for personal and family emergencies, requires prior permission of boss). Employees can take maximum 2 days at a time Annual leave: 3 weeks (after one year of employment). Federal holidays: About 20 days.
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Retirement Benefits: Employees receive two lump-sum payments when they retire: o Provident Fund (similar to 401(k)) Typical contributions: 10-12 percent of base salary (employer and employee). Payable on retirement, voluntary separation, death.
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Gratuity Only employer contributes (15 days salary per year of service). Tax-exempt for employees. Payable on retirement, voluntary separation, death.
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Personal loans for housing, car, home maintenance and family emergencies.
Loan amounts vary by position and level in organization. All employees after their probation (confirmation) period are eligible.
Many medium and large organizations have cafeterias with subsidized lunch facilities.
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Provided with drivers. International cars. Operational and maintenance costs. Phone bill reimbursements. o Organizations provide business and cell phones.
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Quiz 2
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Article Discussion
Grossman, R. (2006). HR's Rising Star in India. HR Magazine. 46-52. Identify and discuss three major HR challenges in India. If you were hired as the HR director for a multinational corporation in India, how would you overcome these HR challenges? Which two HR strategies of PPMS do you think are effective?
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References
Budhwar, P., Luthar, H., Bhatnagar, J. (2006). The dynamics of HRM systems in Indian BPO firms. Journal of Labor Research, 27(3), 339-360. Babu, V. (2006). Infosys: Incredible Infy; What's the secret sauce that makes Infosys the best company to work for, year after year? Business Today, pp 88. Budhwar, P., & Khatri, N. (2001). A comparative study of HR practices in Britain and India. International Journal of Human Resource Management, 12(5), 800-826. Challapalli, S. (2005). Those grand jobs. The Hindu, Business line. Retrieved from http://www.thehindubusinessline.com/catalyst/2005/03/3 1/stories/2005033100070100.htm
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References
Chhokar, J., Brodbeck, F., & House, R. (Eds). (2007). Culture and leadership across the world. The GLOBE book of in-depth studies of 25 societies. Lawrence Erlbaum Associates. Mahwah, New Jersey. Deshpande, S. (1992). Compensation Legislation in India. What US investors need to know. Compensation & Benefits Review, 24(5), 57-60.
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References
World Flag. http://www.worldflags101.com/i/indiaflag.aspx.
http://www.disabilityindia.org/pwdacts.cfm. Klie, S. (2006). HR around the world. Canadian HR Reporter, 7-8. Merchant, K. (2006). Companies in India offer a taste of the sweet life. Financial Times (Asia edition), 23-24. Ratnam, V., & Chandra, V, (1996). Sources of diversity and the challenge before human resource management in India. International Journal of Manpower, 17, (4/5), 7696. Tyler, K. (2006). Infosys Technologies Ltd. HR Magazine, 5660.
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References
Saini, D., & Budhwar, P. (2004). HRM in India. In Managing Human Resources in Asia-Pacific. Routledge. London and New York. Srinivasan, N. (2002). Flawed Law. India Together.
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